Consumer confidence up in most areas of the state

That’s according to the latest results from the Siena Research Institute. It found that overall consumer confidence levels in the first quarter of the year rose in six of the nine metro areas it surveys, including the Capital Region. It fell in the mid-Hudson, Utica and Long Island regions, however.

New York City’s consumers were feeling the most confident, followed by those in the Capital Region. Economists follow the results because consumer spending has historically made up about two thirds of the nation’s overall economic activity, and many believe there’s a direct correlation between a consumer’s confidence in the economy and a willingness to spend.

Still, consumers don’t feel they’re out of the woods yet, and many of the increases were minimal. In some areas, including the Capital Region, consumers are apprehensive about the future.

“Aside from a small surge in Binghamton and Rochester and declines in Mid-Hudson and Utica, confidence tended to hold steady or inch upwards this quarter,” said Doug Lonnstrom, Siena College professor of statistics and finance and SRI Founding Director. “Most of the gains are in current rather than future confidence. In fact, only in New York City do we see more consumers predicting a better tomorrow than today.

“Future confidence, despite some small increases, is especially dismal in Albany, Binghamton, Buffalo, Mid-Hudson, Rochester, Syracuse and Utica,” Lonnstrom added. “Consumers are saying the worst may be over for now, but with continuing job concerns, health care unknowns and a state budget in chaos, the other shoe may soon drop. Still, pent up desire, tax refunds and a little pocket cash appear to be leading New Yorkers to cautiously buy needed big ticket items over the next six months especially among upstaters that have been reluctant to spend over the past year.”